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EX-99.1 - EX-99.1 - NORDSTROM INCd540114dex991.htm
EX-99.3 - EX-99.3 - NORDSTROM INCd540114dex993.htm
8-K - FORM 8-K - NORDSTROM INCd540114d8k.htm

Exhibit 99.2

Fiscal Year 2012 Reclassifications

Beginning in the first quarter of 2013, we reclassified amounts in our financial statements to reflect the way we view and measure our business. As we continue to execute our long-term growth strategy and make investments across operating segments, aligning expenses with the associated benefits enhances the ability to evaluate segment performance. Historical results were also reclassified to match the current period presentation. These reclassifications did not impact net earnings, earnings per share, financial position or cash flows.

We now allocate Fashion Rewards expenses to the Retail segment, including the face value of Nordstrom Notes. We previously recorded all of our Fashion Rewards expenses in our Credit segment. Consistent with our previous segment reporting, our Retail segment net sales include sales from the redemption of Nordstrom Notes. In order to present the consolidated financial results in accordance with generally accepted accounting principles, our Corporate/Other column includes the elimination of net sales when customers used Nordstrom Notes and also includes an adjustment to reduce the Nordstrom Notes expense to their estimated cost.

In addition, certain technology expenses we previously included in Corporate/Other are now allocated to the Retail and Credit segments.

In our Credit segment, we previously presented bad debt expense associated with finance charges and fees as part of selling, general and administrative expenses. We now present this as a reduction of credit card revenue. There was no impact to Credit earnings before income taxes for this reclassification.

Historical information for fiscal year 2012 reflecting the impact of the reclassifications and results of our segments is included below.


Nordstrom, Inc.

Consolidated Statement of Earnings – As Reclassified

Unaudited, in millions except per share amounts

 

Fiscal year    2012   

Net sales

     $11,762    

Credit card revenues

     372    

Total revenues

     12,134    

Cost of sales and related buying and occupancy costs

     (7,432)   

Selling, general and administrative expenses

     (3,357)   

Earnings before interest and income taxes

     1,345    

Interest expense, net

     (160)   

Earnings before income taxes

     1,185    

Income tax expense

     (450)   

Net earnings

     $735    

Earnings per share:

  

Basic

     $3.62    

Diluted

     $3.56    

Weighted-average shares outstanding:

  

Basic

     203.0    

Diluted

     206.7    

Segment Reporting – Reclassified

Unaudited, in millions

 

      Retail     

Corporate/

Other

     Total Retail
Business1
             Credit              Total  

Fiscal year 2012

              

Net sales

     $11,949         ($187)         $11,762         —          $11,762    

Credit card revenues

                             $372          372    

Earnings (loss) before interest and income taxes

     1,409         (246)         1,163         182          1,345    

Interest expense, net

             (134)         (134)         (26)         (160)   

Earnings (loss) before income taxes

     1,409         (380)         1,029         156          1,185    

Capital expenditures

     371         140         511                 513    

Depreciation and amortization

     357         70         427                 429    

Goodwill

     175                 175         —          175    

Assets2

     3,922         1,966         5,888                 2,201                  8,089    
  

 

 

    

 

 

 
                     
1 

Total Retail Business is a subtotal of the Retail segment and Corporate/Other.

2 

Assets in Corporate/Other include unallocated assets in corporate headquarters, consisting primarily of cash, land, buildings and equipment and deferred tax assets.